Question

How much interest will he earn at the end of 6 years

Answer 1

hello

this question involves compound interest and we can easily solve this using the formula for it

first of all, let's get our data out

principal (p) = 4000

rate = 3% = 0.03

time (t) = 6 years

number of times compounded in a year (n) = 1

`\begin{gathered} c\mathrm{}p=p(1+(r)/(n))^(nt) \\ c\mathrm{}p=4000(1+(0.03)/(1))^((1*6)) \\ c\mathrm{}p=4000(1+0.03)^6 \\ c\mathrm{}p=4000*1.03^6 \\ c\mathrm{}p=4776.209 \end{gathered}`

the interest compounded in 6 years is equal to $4776.209